Within a decade the U.S. will face a retirement crisis. The percent of workers covered by a traditionally defined benefit pension plan that pays a lifetime annuity has declined from 38% to 20%. The percentage of workers in the private sector whose only retirement is a defined pension plan is now 10%, down from 60% in the early 1980s. A staggering 68% of working-age people (25–64) do not participate in an employee-sponsored plan. Only 7% of Fortune 500 companies offer traditional pensions to new hires. According to recent studies, the U.S. retirement savings deficit is between $6.8 and $14 TRILLION. 45% of working-age households do not have ANY retirement account assets. According to Fidelity Brokerage, a couple retiring in 2015 with average life expectancies of 85 for a male and 87 for a female will have $250,000 in healthcare costs. 28% of workers have no retirement savings. For the real estate industry, the retail assets not considered “essential” will suffer; and affordable housing (senior and conventional) and self-storage will flourish.
